Trump Criticizes Powell, Threatens Removal Amid Rate Cut Push

President Donald Trump has intensified his criticism of Federal Reserve Chair Jerome Powell, publicly suggesting that Powell could be removed if he does not comply with calls to cut interest rates. Trump has repeatedly accused Powell of being 'too late and wrong' on rate policy, especially compared to the European Central Bank, which has implemented multiple rate cuts. Powell, whose term runs through May 2026, has asserted that the president does not have the legal authority to fire the Fed chair without cause and has indicated he will not step down if asked. The feud has heightened uncertainty in financial markets, which reacted negatively to Powell's recent warnings that tariffs could increase inflation and slow economic growth. As Trump continues to push for lower rates and hints at Powell's possible termination, questions about the independence of the central bank and the balance of power between the executive branch and the Federal Reserve have resurfaced.